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Samsung braced for "iPhone 5 Tsunami," targeted an "attack" on Apple's customer base

post #1 of 32
Thread Starter 
New confidential internal memos presented in the Apple v. Samsung trial detail a "counter tsunami plan" Samsung hoped to set up in response to Apple's iPhone 5 launch, in order to distract from its own Galaxy product vulnerabilities it described as "plastic feeling" with "lack of key feature."



iPhone 5: the next big... wave



"While we are finalizing [Galaxy S3] launch plan and focus on on the execution, it is the time for us to prepare for the next big wave," wrote Dale Sohn, then president of Samsung Telecommunications America, in an email addressed to 30 other people in June 2012.

"As you know well, there will be a tsunami when iPhone 5 is coming. It will happen sometime in September or October."

Samsung iPhone 5 tsunami


"We need the bold and aggressive idea to develop this kind of counter tsunami plan from every perspective," Sohn wrote, suggesting ideas such as a free trial period for iPhone users, intense marketing targeting 3-10 strategic cities and expansion of Samsung's 'store within a store' retail presence "up to 20k stores."

Replying to the message, Michael Pennington, a vice president of sales operations and head of national sales for Samsung's American STA group, wrote, "I certainly agree with that goal.""as we continue to attack their product, we must also sustain the attack on their customer base" - Mike Pennington, Samsung

He noted, "we need to quickly understand the exact reasons why we win customers away from iPhone," and "we should also quickly understand where we failed to win customers away from iPhone in our initial GS3 launch."

The memo added, "as we continue to attack their product, we must also sustain the attack on their customer base. [...] We are working to improve our customer loyalty but our loyal customer must become vocal advocates.

"If we are the only ones telling our customers our product is better, and there is life beyond Apple, we are simply 'bragging.' But if we can get our customers to scream this message, 'it must be true.'

Samsung iPhone 5 tsunami


"At the same [time] we are attacking Apple, we must thoroughly recognize where we are vulnerable. This will come in many forms.

"1. Product quality, plastic feeling
"2. Lack of key feature
"3. Carrier influence due to contractual commitments."

"Where we failed to win customers away from iPhone in our initial GS3 launch"



About eight months prior to the "iPhone 5 Tsunami" memo, Pennington had outlined in October 2011 that "looking deeper into iPhone 4S, it is clear Apple is not worried about us as a hardware competitor, which is where we are focusing.""it is clear Apple is not worried about us as a hardware competitor"

Instead, Pennington wrote that Apple was "continuing to focus on the USER EXPERIENCE, which ultimately puts Google in the center of the target."

As an example of this, Pennington wrote "Google's core strength, Search Engine, can be radically minimized by Apple's new iPhone 4S implementation of Siri. [...] My point is, Google must be as motivated as we should be at this point."

Samsung iPhone 4S tsunami


"Use Google to Attack Apple?"



Pennington was arguing for an idea he had brought up earlier in the same email thread titled "Use Google to attack Apple?"

In the initial message from four days earlier, Pennington alluded to a previous conversation with Sohn, writing, "as you have shared previously, we are unable to battle them directly in our marketing. If it continues to be Samsung's position to avoid attacking Apple due to their status as a large customer, we can go to Google and ask them to launch a campaign against Apple, based on the many better Android options available in the market for Q4.""To avoid attacking Apple due to their status as a large customer, we can go to Google and ask them to launch a campaign against Apple"

"Many customers have been waiting to upgrade to the new version, so timing is critical," Pennington continued. "Now that Apple is potentially disappointing their loyal customer base, we must communicate the numerous better options available.

"Seems Google should be asked to carry their own weight in this battle. However, we could arrange a co-op arrangement for them if they use or [sic] device prominently in their marketing campaign."

Pennington then asked, "Is [Android 4.0] Ice Cream Sandwich strong enough to go head to head with iOS 5?"

Samsung iPhone 4S tsunami


iPhone 4S stokes panic of next big wave



Over the holiday 2011 season, Samsung's stepped up advertising failed to win away iPhone users to its own higher end Galaxy S II flagship.

Instead, Apple's existing customers flocked to the latest iPhone 4S, which accounted for 90% of U.S. iPhone sales and caused 42% of customers break their contracts to buy it, as detailed by Consumer Intelligence Research Partners.

Samsung, meanwhile, spent 2012 and 2013 spending billions of dollars on even more targeted attack ads. The company's documents indicate it was motivated to continue high spending for its "Beat Apple" ads after seeing immediate results in the "buzz score," "voice" and consumer "brand perception" figures reported by companies that measure the effectiveness of advertising.

Samsung presented some initial results of its "Next Big Thing" campaign in a "highly confidential" marketing document from February 2012 (below).

Galaxy Buzz


Samsung also highlighted its findings that the GSII had taken a 21 percent "share of voice" in blogs and forums for being discussed in iPhone conversations, and had grabbed a 72 percent majority "share of voice" among all Android conversations.

Galaxy Share of Voice


Samsung looks for likes in "PR Review" buzz campaigns



One of the key metrics Samsung had been tracking were Facebook "likes," and one of the primary drivers of those likes, as noted in Samsung's documents, relates to a posting, "Dear iPhone 4S and Blackberry, This is why everyone will forget you and love me. Sincerely, Galaxy S III," with a link to Samsung's Facebook page.

The company noted that the message was posted to various social media sites (like Twitter, below) using accounts normally associated with sharing funny memes.

Galaxy Social Marketing


Another avenue for increasing buzz related to "Global PR Reviews," where influential blogs were given special attention to facilitate reviews that might get users talking.

Samsung PR Reviews


Aftermath of the iPhone 5 Tsunami



Samsung's expensive marketing campaigns and indirect efforts to gain a grassroots buzz and "voice share" radically changed the media's perception of Apple and Samsung, inventing a "lack innovation" problem for Apple while creating the impression that Android, and particularly Samsung, had taken over in the smartphone and perhaps even tablet markets.

However, by the end of 2013 enough inside information had leaked about Samsung's actual sales to clarify that Samsung was still only managing to sell a minority portion of the world's premium smartphones compared to Apple, and that it was achieving its overall "market share" through the sale of low end phones it referred to internally as "carrier friendly good enough."

Samsung did, however, successfully trample the sales of other Android licensees, including HTC, LG and Google's own aspirations with Motorola, setting itself up in the position to transition its market power away from Google's Android to its own platform.

The company still faces concerns from its own investors about how it will accomplish this. For 2014, Samsung has maintained a flagship offering that retains the vulnerability issues of 'product quality, plastic feeling; lack of key feature and carrier influence due to contractual commitments' that Pennington discussed back in 2012.

Pennington is among the "at least five" high ranking Samsung executives that have left the company over the past two months, according to a recent report by CNET.

Sohn was replaced as STA president by Samsung's Global Marketing Operations chief Gregory Lee last summer. Sohn is now an advisor to Samsung Mobile chief executive JK Shin.
post #2 of 32
Samshit
post #3 of 32

Once the larger iPhone is released, Samsung is finished in the high end mobile space. LITERALLY the only thing they have left is size, and they're milking that for all its worth in every single one of their ads. There's nothing else. What are they gonna tout? Their shit finger print sensor? Their shit build quality? The garbage that is Touchwiz? iPhones demolish them in every single aspect. 

post #4 of 32
Quote:
Originally Posted by Slurpy View Post
 

Once the larger iPhone is released, Samsung is finished in the high end mobile space. LITERALLY the only thing they have left is size, and they're milking that for all its worth in every single one of their ads. There's nothing else. What are they gonna tout? Their shit finger print sensor? Their shit build quality? The garbage that is Touchwiz? iPhones demolish them in every single aspect. 

I have been very surprised by how long it has taken Apple to release a larger iPhone. They have lost significant market share, and worse, mind share, especially abroad (most of Asia at the very least), because competitors hammered them for the small screen size.

 

If the rumors of the iPhone 6 coming with larger screens is indeed true, there will be no reason other than cost for most consumers to buy something other than an iPhone. Will be interesting to see how things play out on a level field.

post #5 of 32
Samdung !
post #6 of 32
Quote:
Originally Posted by addicted44 View Post
 

I have been very surprised by how long it has taken Apple to release a larger iPhone. They have lost significant market share, and worse, mind share, especially abroad (most of Asia at the very least), because competitors hammered them for the small screen size.

 

If the rumors of the iPhone 6 coming with larger screens is indeed true, there will be no reason other than cost for most consumers to buy something other than an iPhone. Will be interesting to see how things play out on a level field.

I don't even think cost will be a thing.

 

In the UK, where I live, the S5 retails for £569 sim free 16gb. The iPhone 5S retails for £549. 

 

Samsung actually has the most expensive phone, which is absolute madness.

post #7 of 32
The way business people, analyst and bloggers view this as a form of warfare is absolutely moronic in my opinion. "...attack their customer base", "aggressive pricing...", "...we won't give any ground to Apple."

There's even this wikipedia entry: http://en.wikipedia.org/wiki/Marketing_warfare_strategies
post #8 of 32

I want to see Apple ads again like ... Hi I'm Mac. I 'm a PC.

Quote:
Hi. I'm iPhone. I'm Junkdroid. 
iP:     Hey droid... wassup
Dd:   I started sent iPhone blueprints to Copier machine. it hangs
iP:    Are you on Windows?
Dd:  No. Tizen (?)
iP:    Copy in progress?
post #9 of 32

That read was hilarious on an epic level.

 

Good god, Samsung.  Get a grip.

post #10 of 32
Quote:
Originally Posted by Slurpy View Post

Once the larger iPhone is released, Samsung is finished in the high end mobile space. LITERALLY the only thing they have left is size, and they're milking that for all its worth in every single one of their ads. There's nothing else. What are they gonna tout? Their shit finger print sensor? Their shit build quality? The garbage that is Touchwiz? iPhones demolish them in every single aspect. 

I see this:-

"- PR attack plan by pointing out iPhone 5's weakness (small 4 inch LCD size)"

is still in full swing and people who like Apple are the ones accused of being "sheep".
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post #11 of 32
Quote:
Originally Posted by AZREOSpecialist View Post

Samshit

Samshit... different day.

1biggrin.gif
post #12 of 32
Apple messed-up by not producing a large screen iPhone
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post #13 of 32

[QUOTE]but our loyal customer must become vocal advocates[/QUOTE]

 

Since Samsung has to pay bloggers to be "vocal advocates", does that mean their plan to get loyal customers to do this for them for free backfired?

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post #14 of 32
Quote:
Originally Posted by bloggerblog View Post

Apple messed-up by not producing a large screen iPhone

I wouldn't say they messed up, they are more successful than any other smartphone company out there, plus releasing a larger screen later enables Apple to have a staggered "attack" instead of using all the tricks at once.
post #15 of 32

The memo added, "as we continue to attack their product, we must also sustain the attack on their customer base

 

Samsung is waging war. I would like to see Apple hit Samsung with the power of a thousand tsunamis. Nuke Samsung and wipe them out! Take no prisoners.

 

Just about the only thing that they can claim to have that Apple doesn't yet have is phone size, whoopdeedoo. Notice how nobody can make a decent Android phone that is not gigantic sized.  Nobody can compete with the iPhone. And soon, when there are bigger iPhones available, it'll spell even more trouble for all Android phones and Samsung.

 

At the ridiculous rate that Android phones are going, soon their phones will be bigger than a damn iPad. Samsung has nothing. No innovation, no nothing.

post #16 of 32

Android users are the puppets of Samsung.

What we all knew all along, straight from the horses mouth. 

post #17 of 32
I don't like the samsung's galaxy phones with crappy touchwiz and bloatware
post #18 of 32
Quote:
Originally Posted by Apple ][ View Post
 

Samsung is waging war. I would like to see Apple hit Samsung with the power of a thousand tsunamis. Nuke Samsung and wipe them out! Take no prisoners.

 

 

Agreed. A good old fashioned nuking.

post #19 of 32
I am currently living in Korea- and I saw a few 4s and 5 phones around, maybe 1/4. Right now though, the gold iPhone 5s seems to be gaining all sorts of ground. Mind you, samsung still has the larger footprint. But it is interesting for me to see how my friends (all Korean, no expats from any other country) are switching to iPhone. They are quite upset about the 'slush' fund that was brought up around 2010-2011, and the way the company tries to throw money at health problems so as to avoid being reported.

Koreans love all things Korean- most patriotic people i have met so far- but they love Korean people more than Korean companies with shady practices. It is starting to change. The 5s cost the same as the galaxy5 here in Seoul. My friends who have not left Samsung say they either want Tizen, or an iPhone with a larger screen. (age group 26-36)
post #20 of 32

Hilarious. Any time a Scamsung user tries to defend [their] plastic Scamsung phone as being better than an Apple aluminum & glass iPhone, I am going to show them Scamsung's own words that Scamsung plastic phones' quality is worse than Apple iPhone. I have always already told [them], but squirm they shall.

post #21 of 32
Samsung, a company that focuses on copying the competition and beating their competitors in all out war, including using every dirty trick in the book.

Apple, a company that focuses on producing great products and a great ecosystem that people actually want, and love to use.

Worlds apart.
post #22 of 32

I'm amazed that Samsung has not resorted to/resurrected, subliminal advertising yet. Or maybe they have.

 

 

Quote:

Originally Posted by AZREOSpecialist View Post

Samshit

This post is a bit too highbrow for me, can you dumb it down a bit?

post #23 of 32
Quote:
Originally Posted by Chandra69 View Post

I want to see Apple ads again like ... Hi I'm Mac. I 'm a PC.

Hi, I'm an iPhone.

I'm a whole Galaxy!

Really, a whole galaxy. That's impressive.

Yes, it is. I'm quite large, you know.

I see that, Galaxy. Good for you.

It is good for me. Not so good for you. You're a puny iPhone.

Well actually, Galaxy, I'm the same size as you, only smaller. And thinner.

So you are. I didn't see that coming.

Maybe you need a bigger camera.
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post #24 of 32
Still I wish that Apple would change up their release schedule to make it a little less predictable. If they always release in September/October then competitors clearly know when to ramp up the anti-Apple PR machine.
post #25 of 32
Interesting that Samsung points out only one weakness when it comes to the iPhone....size. Lol

In 5 months, they are gonna really be hurting. I know this is anecdotal, but I have a relative that works at an Apple store. Over a year, I've been in that store for a total of around 4 hours. In only 4 hours I've seen no less than a dozen people (usually women) that were upgrading to a new phone. And 11 out of 12 of these customers were torn between an iPhone an an S4. In 9 of those 11 cases, the customer chose the S4 because they couldn't get over the screen size difference. Apple's 4-inch screen was just too small. It was astonishing that so many customers cared about the bigger screen.

I think Apple will grow iPhone sales 25% yoy with the release of a 2 large-screened iPhones. I just hope they are smart enough to see that they need to keep the 4" size and then see how the market adjusts over a year or 2. Personally, I'd like to see a 4.3" iPhone with significantly reduced bezels supplant the 4" in the future. There still is a quarter of the population that prefers a smaller phone.
post #26 of 32
Well said.
post #27 of 32
Quote:
Originally Posted by Dunks View Post

Still I wish that Apple would change up their release schedule to make it a little less predictable. If they always release in September/October then competitors clearly know when to ramp up the anti-Apple PR machine.

I agree. They should release a new 4" every year, then 4 months later release a new 4.7", and then release their updated phablet. 3 new phones in a year, or at the minimum 2. I'd release the 4.7" in the Xmas qtr.
post #28 of 32
Quote:
Originally Posted by revenant View Post

I am currently living in Korea- and I saw a few 4s and 5 phones around, maybe 1/4. Right now though, the gold iPhone 5s seems to be gaining all sorts of ground. Mind you, samsung still has the larger footprint. But it is interesting for me to see how my friends (all Korean, no expats from any other country) are switching to iPhone. They are quite upset about the 'slush' fund that was brought up around 2010-2011, and the way the company tries to throw money at health problems so as to avoid being reported.

Koreans love all things Korean- most patriotic people i have met so far- but they love Korean people more than Korean companies with shady practices. It is starting to change. The 5s cost the same as the galaxy5 here in Seoul. My friends who have not left Samsung say they either want Tizen, or an iPhone with a larger screen. (age group 26-36)

Pent-up demand for a larger-screened iPhone is hard to calculate. Many people are chomping at the bit, especially loyalists that have stuck with iPhone for 3 years waiting for them to release a bigger phone. I think the demand is much much more than most people realize. I would be awfully surprised if Apple didn't sell 75 million iPhones this Xmas quarter.
post #29 of 32

I'm just really glad the Samsung guy didn't say "The sh*t is really gonna hit the fan when the iPhone 5 is released"

post #30 of 32
Obviously there are still plenty of gullible people around, judging by all the comments based on Samsung's PR spin.

From the email in the article:-

"- PR attack plan by pointing out iPhone 5's weakness (small 4 inch LCD size)"

I can't believe how easily Samsung manipulates people.
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post #31 of 32
Scamscum, a.k.a. The Peyton Manning to Apple's Russell Wilson or whoever is playing his team that year.

Scam=shitty company scum=Fandroids that bash Apple and talk up a line of products that have shown a marketing blitz (no matter how shitty) can get big sales for a piece of crap. Samsung's products are the current age Nokia. Cheap devices that can be given away (seriously you never even see Apple's third generation devices going two-for-one) so those same carriers that give away Samsung devices sell Apple's devices at a higher price, off plan, than buying from Apple.
post #32 of 32
Quote:
Originally Posted by hill60 View Post

From the email in the article:-

"- PR attack plan by pointing out iPhone 5's weakness (small 4 inch LCD size)"

I can't believe how easily Samsung manipulates people.

I can't believe how Samsung thinks 4 inches is small. (Double entendre implied.) 1wink.gif

"Apple should pull the plug on the iPhone."

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"Apple should pull the plug on the iPhone."

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